Apple has extended its agreement with Qualcomm for the supply of modem chips to be used in iPhones until 2026. The move in question shows that Apple’s plans to produce its own modem chips will take longer than expected. Qualcomm shares rose 8% in pre-market trading after the news broke.Under the new contract, the US semiconductor giant will supply Snapdragon 5G modem systems to Apple in 2024, 2025 and 2026. In other words, modems up to iPhone 18 will come from Qualcomm. No statement was made about the financial details of the agreement, but it is stated that it is on similar terms and conditions to the previous agreement signed in 2019.
Apple is Qualcomm’s biggest customer
The previous agreement expired this year, and the iPhone 15, which will be introduced on September 12, would be one of the last devices with Qualcomm’s modem chip. However, thanks to the extension of the agreement, Qualcomm will continue to maintain its important position in Apple’s supply chain.
Apple is Qualcomm’s largest customer. The semiconductor company derives about a quarter of its revenue from Apple. According to Bloomberg, this relationship between the two companies, in a sense, strengthened the claim that Qualcomm’s modems are the “best option” for smartphones.
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